How does bid/size affect the liquidity of digital currencies?

1 answers

• OwgOct 23, 2024 · 10 months ago
  At BYDFi, we've observed that the bid/size has a significant impact on the liquidity of digital currencies. When the bid/size is high, it indicates a strong demand for the currency, which leads to increased liquidity. This is because there are more potential buyers in the market, making it easier to execute trades. Conversely, when the bid/size is low, it suggests a lack of interest in the currency, resulting in lower liquidity. Traders may find it more difficult to buy or sell the currency at the desired price. Therefore, monitoring the bid/size is crucial for understanding the liquidity dynamics of digital currencies.
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